Australian Tutoring
Association (ATA) Ltd.
Within Tuition
Volume 4, Issue 2
July 2009
The Australian Tutoring Association (ATA) Ltd Newsletter
Chairman’s Report
Welcome to the July 2009 edition of the Australian Tutoring Association (ATA) newsletter. It is hard to believe but the second half of
the year is rushing towards us. It is even
harder to believe but we have now been representing the tutoring industry, lobbying and
benchmarking best practice for nearly four
years.
I looked back recently on some editions of
our newsletter from around this time last
year. At that time we were just entering into
the Curriculum Corporations launch of the
federal government’s “An Even Start (AES)”
tuition programme. Of course this has now
come and gone. Little did we know at the
time that the world’s economic climate was
about to change dramatically. Upon reflection
the programme could not have come at a
better time for small businesses such as ours,
providing much needed economic stimulus
through the beginning (and hopefully) the
worst of the ‘financial meltdown’. Taking into
consideration the logistical and administrative
issues that most of us encountered in dealing
with “An Even Start (AES)”, the feeling generally within the industry is that the programme
did target the students that really needed the
help and went some way towards achieving
the outcomes it aspired to.
Tutoring by its nature would tend to fall into
the discretionary spend category of most
household budgets. Although, some would
argue, not at the extreme of this category,
tutoring businesses are susceptible to changes
in spending by consumers.
The ATA Board are very aware that some of
our members may be suffering a downturn in
business at the moment. We have, and are
continuing to, lobby the federal government
on making changes to the Education Tax Rebate (ETR) with this in mind, to this date unsuccessfully. There is a template available on
the ATA website available for any members
or parents that may be interested in expressing a view to Julia Gillard on this issue. We
strongly encourage you to do so and to encourage your clients to sign and send in the
parent letter.
In difficult times it is usually those businesses
that are providing a quality service with structures that offer significant advantages to par-
ents and students that prosper. It is even more
important that at these times businesses do
not “cut corners” with regard to best practice.
Our Code of Conduct is the reputational protection that will help our members maintain
market share and build strong businesses.
The ATA is continuing to work hard to provide members with value. We are always considering ideas with regard to getting our message across to the media and government. We
have now bedded down and are well into our
second year in the relationship with AAMI our
provider of insurance. The insurance package
offered and their policies for our members
providing a significant discount to what is available elsewhere in the market.
We can now also announce that after a
lengthy period of research and negotiation we
are about to sign an agreement with a major
bank that will provide members with discounted banking products.
Taken together, the insurance and banking
benefits alone will more than offset the cost of
membership subscriptions. Effectively if you
agree to act ethically, under the ATA’s code of
conduct, you cannot lose. In fact you should
now have both a competitive and reputational
advantage over non members.
Of course we continue to explore other alliances that may provide benefits to our membership base.
Chris Druett - ATA Chairman.
At last: NSW Tutors subject to
compulsory Child Protection
Screening in 2010
- but issues still remain...
From May 2010 self-employed tutors in NSW
will have to have a current child protection certificate or risk facing a $2,000 fine. The cost of
the certificates will be $80 according to the
NSW Minister for Youth, the Hon Graham
West. The background check involves a police
check, assumed to be national. The checks will
pick up whether a person has had convictions in
regards to child sex offences, kidnapping, murder,
or violence against children, said the Minister.
Certificate-holders will be listed on a government website so that prospective tuition clients
Contents
Chairman’s
Report
1
Newsletter
contents
1
NSW Tutors subject to compulsory Child Protection Screening in
2010
1
University
education and
tax deductibility
2
Discounted
banking for
ATA members
3
Consumer
protection news
3
Client
relationships in
the economic
downturn
3
Stop Press
4
can check to see whether
people are covered.
The Australian Tutoring Association (ATA) Ltd. is pleased
with the changes, although the
Board would like the cost to
be funded by the State government. Moreover, it wonders
what compliance regime will
be in place to ensure adherence to the new laws.
How will authorities know
whether uncertified people
are engaged in the provision of
tuition?
References: http://
www.abc.net.au/news/
stories/2009/07/12/2623397.htm
Within Tuition
Page 2
University education and tax deductibility
A Victorian student has successfully claimed educationrelated expenses as a tax deduction, after a court decision
that could open the door for thousands of studentassistance recipients nationwide. The Federal Court in Melbourne handed down its ruling on the first of the month,
but it was no April Fool's joke that allowed Symone Anstis
to claim $920 on textbooks, transport and a university fee.
In a decision that could have major ramifications for the
Government's Henry Tax Review, the 24-year-old Australian Catholic University graduate successfully argued that in
order to qualify for the government Youth Allowance payment, it was necessary for her to incur a range of unavoidable expenses.
To qualify for Youth Allowance, a student must be enrolled
at an educational institution, undertake at least three quarters of a full-time study load and be making satisfactory
progress towards completion. The court agreed with Ms
Anstis that in order to meet these requirements a student
was forced to make a range of expenses that they were
entitled to claim as tax deductions.
Tax law expert Miranda Stewart says the case has a number
of implications. "On one level it just applies normal principles that expenses incurred by a taxpayer in gaining assessable income are deductible," said associate professor Stewart, director of the Taxation Studies program at the University of Melbourne "What's interesting about the case is
that she was allowed to claim the expenses against Youth
Allowance as assessable income."
She says this could create a precedent for students across
the country and any recipient of welfare payments to claim
expenses against their pensions. "In a previous public ruling
(the ATO) has said that it will not allow educational expenses to be claimed against welfare payments like Youth
Allowance, so the Tax Office may be concerned about this
decision and they will be likely to lodge an appeal." Currently $1.9 billion of Youth Allowance and Austudy payments are handed out to eligible students each year.
David against Goliath
The decision comes after a two-and-a-half-year battle by Ms
Anstis, who is in her third year of a teaching career in Melbourne's western suburbs. When she lodged her tax return
for the financial year ending June 2006, she declared
$14,946 of earnings from a part-time job as well as $3,622
from Youth Allowance. When it came to claiming tax deductions, Ms Anstis included $920 spent on textbooks, a
computer, transport and a university administration fees.
She reasoned that her Youth Allowance was part of her
income, so she should be able to claim deductions on relevant costs. "I was getting Youth Allowance and there's costs
involved in studying like books and stationery and what not,
and I thought you should be able to claim it," the Noble
Park resident told the ABC. "It was the first year I'd re-
ceived Youth Allowance and I'd just moved out of home. I
think it seemed quite logical and my Dad backed me up and
told me you should be able to [claim it]."
A few months later she received a letter from the Tax Office informing her that she was not entitled to claim the
deductions. "My Dad said it probably would get knocked
back, but then we decided to take it further. So it went to a
tribunal." The case was not expected to get up and the
ATO was successful in blocking the case in the Administrative Appeals Tribunal last year. But Ms Anstis was not content to leave the matter there, drafting in more help from
her lawyer father Michael, who decided to represent her.
Her primary motive in making satisfactory progress in her
course of study was to continue to receive Youth Allowance, which, in turn, was necessary in order to complete
her studies," he argued in the Federal Court in Melbourne.
The Tax Office countered with the same argument they
had used in the tribunal, saying the expenses were not incidental to Ms Anstis's earnings. "The expenditure had been
incurred to enable the applicant to obtain new employment
and was 'at a point too soon' to be regarded as having been
incurred in gaining or producing assessable income," the
Commissioner's lawyers said in court. But the court found
that the costs were a necessary part of meeting the requirements of a degree, which was necessary to be eligible
for youth allowance. Because the expenditure was in the
same tax year as the receipt of Youth Allowance, the court
ruled that the Tax Office was wrong in arguing that the
costs were incurred at a "point too soon".
Major precedent
"It was so good. Although I was hoping to win you don't
expect to win with a Federal Court case so I was really
happy," Ms Anstis said. "I've been speaking with my auntie
about it, who's a student, and she was happy because she
might be able to claim some costs now. It should affect
quite a few people." Her father Michael is confident the
decision will "virtually guarantee" that students can now
proceed to claim tax deductions against their assistance
payments. Treasury Secretary Ken Henry is currently leading a major review of the entire Australian taxation system,
which will examine the complicated system of tax deductions. The ABC understands there is a view within the
Treasury that the deduction system is far too complex and
intricate, and an overhaul could be coming. This decision
will certainly give Dr Henry some food for thought. A
spokesman for the ATO says it is considering its options
and may appeal against the ruling.
Source: Nic MacBean, ABC News Online http://www.abc.net.au/
news/stories/2009/04/16/2544542.htm?site=melbourne, 17.04.09
accessed on 15.07.09
Volume 4, Issue 2
Discounted Banking for ATA
members coming very soon
The Australian Tutoring Association (ATA) has negotiated
a deal with a major financial institution which provides discounted banking products for ATA members
The idea is for ATA members to obtain added value for
ATA membership. Over the coming months the ATA hope
to be able to announce other significant strategic partnerships for the benefit of ATA members.
Consumer protection news
From time to time unscrupulous business organisations
target vulnerable clients in order to try and make money
quickly. Apart from the confusion, hurt and suffering inflicted on clients, such behaviour also causes a distrust of
the industry and tarnishes all operators. It is therefore in
everyone’s interest that all tuition organisations, whether a
member of the ATA or not, act in ethical and honest ways
at all times.
Brisbane Math and English academy fined $6,000
A maths and English tutoring company has been fined
$6,000 in the Beenleigh Magistrates Court for breaching fair
trading laws.
Minister for Tourism and Fair Trading Peter Lawlor said the
Brisbane Academy of Math & English Pty Ltd made an unsolicited approach to a family living in the Woodridge area.
“The trader had contacted the refugee family who had recently arrived in Australia from Sierra Leone, promising
them an education package that would assist their teenage
children” Mr Lawlor said. The company also arranged the
finance for the purchase of the package.
“In breach of the Fair Trading Act, the company failed to
outline to the family how they could withdraw from the
contract, worth nearly $5,000, within the 10-day cooling off
period.
The company provided the product before the 10-day cooling off period.
Mr Lawlor said the Office of Fair Trading helped the family
receive a refund.
“This outcome demonstrates Fair Trading’s commitment to
ensuring door-to-door traders operate within the law and
should be a warning to unscrupulous traders”
Mr Lawlor encouraged consumers to be aware of their
rights when approached by door-to-door traders.
Source: http://statements.cabinet.qld.gov.au/MMS/
StatementDisplaySingle.aspx?id=63759, accessed on 14.07.09
Page 3
Client relationships in the economic downturn
by Mohan Dhall
The economic downturn is a significant external factor impacting on business incomes in 2009. Under such circumstances business owners would be wise to focus on improving client relationships whilst recognising that the decision to chose a tutor is not taking lightly when job security
is low and incomes are uncertain. Specific strategies that
business owners and managers can apply include:
• Offering discounts for customers who have shown loyalty. This can be done by giving price reductions over an
agreed number of tuition sessions
• Adding value to the tuition sessions by making available
supplementary resources at discounted rates
• Keeping prices constant even though there are very
moderate cost of living rises. Certainty help clients feel
valued and respected
• Applying a strategy of price lining. This means offering
different price points for different levels of service.
Thus, for example, a tutor can offer a class of 3:1 and
charge each client substantially less, still giving the student the benefit of tuition
• Tutors can cut cost by spending less on advertising
through focusing on a direct marketing approach or
below the line approach to selling which is cheaper
• Businesses can seek to diversify the range of educational
services they offer. In order to do this business owners
and tutors should listen closely to what the market is
telling them it wants.
It has been said that education is recession-proof. When
the education is supplementary, and the spending is discretionary, then this is manifestly NOT true. The onus then is
on business owners and tutors to find ways of improving
service delivery and better meeting the needs of clients.
This requires imagination, time and effort.
Case Study in value adding
A couple of strategies that could be adopted involve negotiating with parents and students to only supply services that
are necessary. This means that students will see the tutor
once and we will together diagnose a pattern of study,
most of which is done by the student in their own time.
Under this model, the next and future sessions are only
booked in once the student has completed all prior work
and taken it to the best of their ability. In this way the tutor’s role is far more one of ‘facilitator or mentor’. The
pattern of support is absolutely shaped to the student and
their family’s needs. The financial incentive is for the student and family to be as independent of assistance as possible. In conjunction with this tuition centres can create a
library of text books that parent can borrow for their children free of charge. This means that students can do practice papers supervised by parents in their own time.
This approach helps parents feel valued and they know that
educational outcomes are placed above commercial interests.
Page 4
Within Tuition
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ATA Board Meetings
The ATA Board meets from time to time (at least four
times per year face to face) and conducts regular teleconferences. The ATA Board aims to improve the rage
of services offered to ATA members. Members are
welcome to contribute items for the Board to discuss
through contacting one of the Board members or
emailing the ATA at the addresses listed below. Members are invited to contribute to the newsletter, which
is published quarterly. The ATA Newsletter is distributed in hard copy form to all members and is also
available on the ATA website for download.
Within Tuition Editor: Mohan Dhall
[email protected]; Ph (02) 9704 5724 or mobile on
(0408) 619 714
Contacting Us
For contributions and comments please email the ATA
[email protected] or [email protected] au; mail us at:
Australian Tutoring Association (ATA) Ltd.
PO Box 256
Croydon, NSW 2132
Phone (02) 9704 5724; (0408) 619 714
Fax: (02) 9704 5677
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ATA Updates:
An Even Start (AES)
The An Even Start (AES) Program is currently being assessed by Urbis - an organisation contracted by DEEWR to
interview and compile an assessment of the program from
the point of view of the stakeholders.
Sticker availability
The ATA has stickers available for car bumpers and for
windows of premises. All new members received two such
stickers upon acceptance of membership. Additional stickers can be purchased from $1 each from the office.
Back Issues of the Newsletter
Previous issues of the ATA newsletter are available upon
request. Moreover, they can be downloaded from the ATA
website: www.ata.edu.au.
Updates to the ATA Website
The ATA website is continually being updated and improved in order to provide members with better information and to guide and direct tutors as to the activities of the
Board. In recent months we have engaged both parents
and tutors in a lobbying campaign aimed at the Federal government’s Education Tax Rebate (ETR) which at present
specifically excludes tuition.